TEB FAKTORİNG A.Ş.
ONE OF THE BIGGEST PLAYERS IN ITS INDUSTRY
One of the biggest players in its industry, TEB Faktoring A.Ş. (TEB Faktoring) provides export, import and domestic factoring products and services to corporate and commercial customers and SMEs.
In 2021, TEB Faktoring’s turnover was TL 15.7 billion and its total assets were TL 4.8 billion, with a growth of 82%.
Having impacted the whole world for the last two years, the Covid-19 pandemic took its toll on the Turkish economy as well. However, in parallel with the growth trend of the Turkish economy in 2021, the turnover of the factoring sector also expanded which increased by 34% during 2021.
Although the restrictions implemented in 2021, the weakened Turkish currency and the uptrend in inflation affected the Turkish economy negatively, the shift of global orders to Turkey influenced our country’s export volume positively.
94% GROWTH IN NET PROFIT
TEB Faktoring recorded increase particularly in its overseas factoring transactions in line with the rise in Turkey’s exports and successfully increased its factoring receivables 85% in 2021.
The company’s return on equity (ROE) was 25.5% which has been significantly above the sector ROE of 18.2%.
In 2021, the factoring industry’s non-performing loan ratio (NPL) and cost of risk ratio were 2.8% and 1.0%, respectively.
In 2021, TEB Faktoring’s NPL ratio and cost of risk ratio were 0.60% and 0.39%, respectively, which are well below the industry average.
As of 2021 year-end, the company had 15 branches and 96 employees.
LEADER IN EXPORT FACTORING
Named the world’s best export factoring company seven times by the Factors Chain International (FCI), the world’s largest factoring chain, TEB Faktoring succeeded in leading Turkey’s export factoring market also in 2021.
Having adopted an efficient and effective company management principle, TEB Faktoring continually improves its work processes in order to provide better quality and faster service to its customers and to correctly analyze and satisfy customer needs, and attaches great importance to digital transformation and effective customer relationship management.
TEB Faktoring increased its investment in this area in recent years.
PRIORITY IS ON SMES
TEB Faktoring caters to customer needs evolving with the advancing technology by offering an effective and lean customer experience and by standing by its customers any time, wherever they may be, in the manner preferred by the customers. Extending increasing support to all its customers with a particular focus on the SMEs, TEB Faktoring has contributed to Turkey’s sustainable economy and carried on with its support.
According to the customer satisfaction survey that featured questions in diverse categories in 2021, TEB Faktoring customers’ satisfaction ratio is 88%.
GROWING IMPORTANCE OF THE DIGITAL
In parallel with the changes in customer habits resulting from our fast-moving age and technology, sustainable digital transformation and services play an ever-increasing role in the real economy and competitiveness. TEB Faktoring kept improving its digital channels in 2021 in line with its customer-oriented and innovative vision.
Besides investing in digital channels, TEB Faktoring stood by its customers at all times through its conventional channels and customer representatives during 2021.
TEB Faktoring will continue to support its customers through all available channels directed towards need and choice by blending digital and conventional channels.
Concentrating on customer needs and feedbacks in innovation and digital transformation projects, TEB Faktoring put Hızlı Başvur (Fast Apply) and TEB Faktoring mobile application in its focus, which will let customers send their applications anywhere, anytime they may need with an invoice-backed cheque.
TEB Faktoring targets to establish a system enabling remote performance of transactions by its customers, to the extent permissible under the legislation. Having presently digitalized its application process, TEB Faktoring will further reinforce its digital channel infrastructure in 2022 by closely following up trends and developments for an enhanced and lean customer experience.
In order to diversify its delivery channels used to reach its customers, TEB Faktoring evaluates potential partnerships with fintechs and digital platforms that make up an important part of digital business models.
TEB Faktoring will carry on with its digital transformation and process improvement projects enabling effective risk management, and increased productivity, automation and service speed in 2022, and will contribute value to its customers and remain one of the players steering the marketplace in the future, as it has been before.
FOR HEALTHY GROWTH OF SMEs
Proper management of risks in the domestic market has become more critical. In today’s economic environment, for healthy growth, SMEs will need to focus on exports with more favorable conditions. Their most significant motivation will be to open up to new markets, realize trade with companies in unfamiliar countries where they cannot measure their risk while protecting their cash flow and equity.
In line with this need, TEB Faktoring will continue to be the biggest supporter of primarily the SMEs as well as firms of any scale by providing guarantee, finance and collection services either in combination or individually.
Besides the support it extends to the SMEs, TEB Faktoring offers boutique solutions generating value also to corporate companies. The company offers solutions that are advantageous for all parties concerned, mainly supplier finance, to corporate companies. Through Multi-Local, an authentic approach, the company offers service to multinationals with the added contribution of BNP Paribas’s global network and synergy.
TEB Faktoring keeps generating value for its customers and all its stakeholders, backed by the strong relations of TEB and BNP Paribas Group in Turkey and abroad.
TEB PORTFÖY YÖNETİMİ A.Ş.
8TH LARGEST COMPANY IN ITS SECTOR
Established in 1999, TEB Portföy Yönetimi A.Ş. (TEB Asset Management) has been operating in asset management sector.
As of year-end 2021, it is the 8th largest asset management company in Turkey, with TL 22.1 billion and 3.39% market share in the sector.
THE BEST ASSET MANAGEMENT COMPANY IN TURKEY
TEB Asset Management was selected as the “Best Asset Management Company in Turkey” as part of the International Finance Awards 2021 organized by the International Finance Magazine, one of the leading finance and business analysis publications of the UK.
The key factors that brought this award included the importance attached to sustainability, the sensitive approach to environmental, social and governance (ESG) matters, leadership in multi-asset investment, broad product range, role in robo advisory, and adoption of an innovative asset management concept.
A COMPREHENSIVE FIELD OF ACTIVITY
Authorized by the Capital Markets Board of Türkiye (CMB) to engage in asset management and investment advisory activities on 15 June 2015, the Company has an authorization certificate numbered PYŞ/PY.22-YD.11/524.
The main activity of the company is to launch and manage mutual funds subject to the Capital Market Law and the provisions of applicable legislation.
In addition, TEB Asset Management, which also manages private pension funds, provides investment management services to institutional and retail clients in line with their risk profiles as a proxy under portfolio management agreements and investment advisory services to international funds.
EXPANDING DISTRIBUTION NETWORK
On 16 August 2019, TEB Asset Management reached a deal with ING and acquired all shares of ING Portföy Yönetimi. Thanks to the strategic collaboration with ING for the distribution of mutual funds launched by TEB Asset Management and with NN Hayat Emeklilik for the management of pension funds launched by NN Hayat Emeklilik, the company further increased its existing strength in the sector in 2021. During the reporting period, TEB Asset Management signed TEB Asset Management fund distribution agreements also with Burgan Bank, Alternatif Bank and Turkish Bank and kept expanding its distribution network.
A WORKING CONCEPT THAT ELIMINATED THE PANDEMIC EFFECTS
Following the Covid-19 outbreak, TEB Asset Management began working mainly on the basis of remote access.
In this context, the company kept all risk and control points under close watch, maintained close contact with its clients and business partners regularly keeping them informed about financial markets and mutual funds, and prioritized liquidity in portfolio investments, by taking necessary precautionary actions to preclude any liquidity problem under an extraordinary circumstance.
The synergies that TEB Asset Management generates by collaborating with BNP Paribas Asset Management, one of Euro Zone’s leading asset managers, are accelerating the company’s progress in becoming a global force. Thanks to this collaboration, TEB Asset Management entered into strategic partnerships with many other international firms.
AS OF 2021 YEAR-END
TEB Asset Management possesses a broad external distribution channel. The Company’s key performance indicators as of 2021 year-end are summarized below:
· 2.66% market share in the mutual funds market, with a total of TL 7.9 billion of assets,
· 3.73% market share in the money market mutual funds,
· 2.39% market share in the actively-managed mutual funds,
· total of TL 117 million assets under management in its institutional wealth management and discretionary portfolio management business lines,
· 5.63% market share in the pension funds market, with a total of TL 13.7 billion assets,
· total of TL 374 million in international investment funds.
ONE OF TURKEY’S LARGEST ASSET MANAGERS
The synergies that TEB Asset Management generates by collaborating with BNP Paribas Asset Management, one of Euro Zone’s leading asset managers, are accelerating the company’s progress in becoming a global force. Thanks to this collaboration, TEB Asset Management entered into strategic partnerships with many other international firms.
TEB Asset Management manages Parvest Turkey Fund, a leading Turkish equities based fund whose assets of TL 254 million are invested in the stocks of companies established in Turkey.
TEB Asset Management also manages Japan-based Turkey Equity Mother Fund, whose assets amount to about TL 120 million.
TEB Asset Management provides investment advisory to other international funds which invest in Turkish equities with asset size of TL 57 million.
Based on the total assets of equity based international funds that are managed and advised, TEB Asset Management is one of Turkey’s largest asset managers working for international clients.
Five new mutual funds, including TEB Asset Management Sustainability Fund Basket Fund that attests to the importance TEB Asset Management attaches to sustainability and its sensitive approach to ESG matters, were offered to the public in 2021.
Continuing to work towards offering innovative platforms to its clients in the area of digitalization, TEB Investment will be launching its new investment applications and websites from early 2022.
TEB YATIRIM MENKUL DEĞERLER A.Ş.
25 YEARS OF EXPERIENCE
Having started its operations in 1996, TEB Investment conducts the investment services and operations of the TEB Group as a “Broadly Authorized Brokerage House” being an investment house licensed by the Capital Markets Board of Türkiye (CMB).
TEB Investment currently provides the following investment services:
· Brokerage services (domestic and abroad)
· Portfolio intermediation services (domestic)
· Investment advisory services
· Issuance intermediation services
· Custody services (Limited custody services)
· Introducing brokerage services.
Backed by 25 years of experience, TEB Investment reaches its clients at home and abroad with an extensive array of products and services through a variety of product and service channels that address the particular needs of different investor profiles. Accordingly, the company provides intermediation services in capital market instruments such as equities and derivatives markets, debt instrument markets and mutual funds, along with corporate finance and research services.
In the field of corporate finance, TEB Investment offers high-quality advisory services in the areas of mergers and acquisitions in integration with intermediation of public offering and debt aimed particularly at fulfilling the financing needs of businesses.
In parallel with the developments in international markets, TEB Investment captured the technological innovations that gained speed especially in recent years in its own IT infrastructure, upon which it has developed major projects and upgraded its digital infrastructure covering both mobile and desktop applications in line with customer demands.
STRONG RESEARCH INFRASTRUCTURE
Another important advantage TEB Investment enjoys in the investment houses universe is the research infrastructure at its disposal, which supports its extensive and efficient marketing network. TEB Investment has become an investment house appreciated particularly by investors with a number of awards earned in this area in recent years.
Specifically in the capital markets, TEB Investment is an investment house of choice by virtue of its competent human resource capable of effectively serving both individual and institutional investors, a team of experienced research experts, ability to combine its local market knowledge with the international experience of its global partner, BNP Paribas, and effective use of technology.
THE TRIGGERING EFFECT OF TECHNOLOGICAL DEVELOPMENTS
TEB Investment recognizes that digitalization, which has gained speed due to the trends in technology, is modifying the sector’s structure and business conduct in parallel with the changes in international markets and local regulatory framework. Aware of this fact, the company implemented the strategies it has formulated and concentrated on enriching the customer experience through service diversification in different segments.
In 2021, as the first step of achieving these targets, digital transformation initiatives were continued in order to create a customer experience that puts effective employment of technology and research in the forefront, and to rebuild TEB Investment into a more efficient company with a higher level of digitalization.
Continuing to work towards offering innovative platforms to its clients in the area of digitalization, TEB Investment will be launching its new investment applications and websites from early 2022.
The new platforms that will cover a number of value-added services will bring along many infrastructural innovations which will support investment decisions and speed up service processes in terms of customer experience.
TEB Investment constantly reviews and revises its technical and organizational infrastructure as necessary in order to complete its efforts targeted at new services planned to be introduced in the coming period, particularly structured products and digital platforms, and to create added value for all its stakeholders amid the evolving market structure.
AN APPROACH THAT IS ALIGNED WITH MARKET DEVELOPMENTS
On the basis of domestic markets, on the other hand, recent global and local developments fueled household interest in the capital markets from the first quarter of the year, and hence the number and composition of investors changed significantly.
AS PART OF COVID-19 MEASURES
Along with the ongoing pandemic process in 2021, TEB Investment enabled all its employees to carry on with their work seamlessly, securely and without suffering from business interruption through remote access enabled by its technical infrastructure and means. During this period, all customer marketing activities, and contacts with internal and third parties were carried out through remote access.
TEB Investment Head Office and branches implemented rotating working system, and the health of employees was monitored closely. In the office environment, equipment and protective materials securing hygiene were distributed to all employees, and necessary measures were taken. Physical and protective health requirements defined by the Group and by the public authority were implemented at a high standard to safeguard employee health. The actualizations that occurred in the Company’s revenues and expenses by reason of Covid-19 did not have a material impact on the Company’s financials.
AN ACHIEVEMENT SURPASSING BUDGET TARGETS
As a result of all these developments, TEB Investment successfully attained its budgeted targets for 2021 and authored significant achievements in terms of a number of criteria.
At 2021 year-end, TEB Investment ranked 21st with a 1.43% share of the market for its trading volume worth TL 214,938 million. TEB Investment ranks 10th in Borsa İstanbul Derivatives Market with a 3.33% market share secured with a trading volume of TL 298,160 million.
TEB Investment revamped its website into a mobile-compatible touchpoint with enriched technological infrastructure for its visitors on the digital environment. tebyatirim.com.tr website was awarded the second prize in the Banking and Finance category at the 19th Golden Spider Web Awards.
With its organizational and systemic infrastructure focused on domestic and international developments and changes, TEB Investment targets to increase its market share particularly through digital channels and investment advisory services, and to sustain its active and pioneering role in the development of our country’s capital markets by offering high-quality and value-added services to investors in the coming year.
With the “Convertible Bond Issuance Financial Advisory and Global Coordination Project” carried out in the reporting period with SASA Polyester, TEB Investment was honored with the “Most Creative Capital Market Project” award at the TCMA Golden Bull Awards organized for the sixth time in 2021 by the Turkish Capital Markets Association (TCMA).
SASA convertible Eurobond project, in which TEB Investment and BNP Paribas were engaged as global coordinators, is characterized as Turkey’s first issuance in this area. With this feature, the project contributed directly to diversification of capital market instruments and introduced an innovation to the market. In addition, given the prevailing conditions at the time and the low number and size of non-financial corporate borrowing instruments, the deal that has been carried out also supported the development of the capital markets.
MOVING FORWARD WITH A REFORMULATED VISION
Having redefined its vision along this line in 2021, TEB Investment spelled it out as “Our vision is to be named as the place where all investors active in financial markets of Turkey place the highest reliance on, and take support from the suggestions of, and feel standing beside themselves on their way to guide their investments and achieve their goals”.
The company carries on with its operations with the same vision.
